Work starts on £9m North Yorkshire care home
Work has got underway on a new, luxury care home at Barkston Ash near to Tadcaster in North Yorkshire.
The £9m scheme – called Highfield Care Home – is on the former site of Scarthingwell Hall and consists of a 66 bed, two storey residential care facility being brought forward by Barchester Healthcare Ltd to meet local demand.
Leading contractor Clegg Construction has been appointed to the project which includes replacing an aging school building currently used to provide residential care facilities with the new, purpose-built development.
Demolition work has already started on site, with the completed care home forecast for delivery in summer 2023.
Lyndon Bowler, project manager for Clegg Construction, said the new facility would provide much needed, high quality residential care accommodation for the area, which was a popular retirement destination.
He said: “Barkston Ash is a pretty village in easy reach of Tadcaster, York, and Leeds, and as a result, is a much sought-after destination for both families and retired people.
“However, the existing care facilities were no longer fit for purpose. The building has outlived what could reasonably be expected from a 1960s development with flat roofs and poor insulation.
“It also doesn’t enable residents to get any meaningful benefit from the site’s fantastic location, such as views of the nearby Grade II listed church and the surrounding countryside.
“It is for this reason Barchester has decided to redevelop the site, to create high quality facilities that will provide a very high standard of care in a stunning location.”
Once completed, Highfield Care Home will offer a variety of lounge, dining, and communal spaces with pleasant views, that are close to the living spaces.
Most ground floor bedrooms will have direct access to outside space, and a number of safe external terraces will be provided for first floor residents.
The building design draws references from the former Scarthingwell Hall, and the demolition of the former school assembly hall will enable the creation of a central garden area for residents to enjoy.
Clegg Construction is headquartered in High Pavement, Nottingham, and has offices in Thorpe Park, Leeds and Ely Road, Cambridge.
Spring Statement misses significant opportunities says Manufacturing Association
Commenting on the Spring Statement, Stephen Phipson, Chief Executive of Make UK, said: “It is right that the Chancellor should prioritise help for the lower paid and those most in need at such a difficult time and business will understand this.
“However, Government cannot escape the fact that manufacturers are facing eye watering cost increases that are pushing many towards a tipping point and companies would have been looking for substantial business support measures to help alleviate these. In particular, the lack of action on energy costs for business is especially hard to fathom.
“It has been two years to the day since lockdown began and there is very little in today’s statement to support a sector that kept working throughout the pandemic, ensuring that there was food on the shelves, PPE for our NHS and medicines for the people who needed them. The promise of jam tomorrow with consultations through the summer and action in the Autumn will also be of little comfort for many who would have liked to have seen action and support immediately”.
“We have also yet to see a long-term economic vision that has enterprise, growth and innovation at its heart. Without adding a turbocharger for growth the Government risks leaving the economy spluttering along as a two stroke.”
On the incoming NICS rise Verity Davidge, Director of Policy at Make UK, said: “Today was a missed opportunity for the Chancellor to act on concerns raised by employer and employee groups alike to delay the NICs hike until the economy is in a more robust position. The NICs increase is a tax on jobs with six in ten manufacturers saying it will impact recruitment and the majority planning to pass onto the customer leading to further inflationary pressures. The NICs increase is just one of many significant costs facing UK manufacturers and there will be a big question as to whether the UK is a competitive place to do business right now.
On the lack of support for business on energy, Verity Davidge, Director of Policy at Make UK said: “The lack of support for businesses to tackle spiralling energy costs is beyond disappointing, and deeply frustrating. With manufacturers seeing historically high energy bills, today was the Government’s chance to give businesses much needed support. Reducing the policy costs that make up a large part of overall electricity costs together with a boost to extending energy funds and grants, would have given manufacturers the best chance of cutting their energy bills and keeping their businesses afloat.
On potential reforms to the R&D tax credit scheme Fhaheen Khan, Senior Economist at Make UK, said: “The R&D tax credit scheme is the most commonly used form of innovation support among manufacturers. Any changes to the scheme must be done in close consultation with the manufacturing sector, which is response for 64% of private R&D investment.
“Government must be careful not to throw the baby out of the bath water. While the scheme may not be perfect it should be reshaped and not radically reformed and any suggestions it should be scrapped entirely must be ignored. We look forward to continuing to work with Government to make the scheme work better for businesses of all sizes and ensure the UK can continue to compete on the global innovation stage.”
On commitment to look at investment tax cuts James Brougham, Senior Economist at Make UK, said: “For what was a well-received policy at the time of its inception, the Chancellor has missed the significant opportunity of plucking some low-hanging fruit by way of adjusting some simple, yet fundamental, flaws in the Super Deduction scheme. Alluding to forthcoming investment tax announcements in the next Budget does little to support the industry now, when investment confidence is in dire need of bolstering.
“If the Government wants the economy to invest, innovate and grow now, the Chancellor must also now stand ready to afford confidence to the sector through longer-term policies that show individual businesses are supported in the investments they undertake that ultimately benefit people, places and communities.
“The lack of investment-spurring policy announcements today will send a worrying signal throughout industry that businesses are to bear the risk alone through this fragile recovery, certainly hampering investment in the rest of the year as the tidal wave of rising costs washes away hopes of a prosperous recovery.”
On the review of the Apprenticeship Levy Bhavina Bharkhada, Head of Policy & Campaigns at Make UK, said: “The decision to review the apprenticeship levy is well overdue and will be widely welcomed by manufacturers – the true champions of gold standard Apprenticeships. It will be essential that the Government works with business to make the right calls on future reform so that we get this right. Over the last decade, the Government has committed to an apprenticeship system that is led by employers and it is important that it continues to uphold this principle. Any changes must ensure that funding for apprenticeships is sustainable over the long term, and that businesses are able use it to recruit and retain the apprentices they need.
“In the short term, allowing employers to use some of their levy funds to contribute to apprentice wages would immediately unlock greater investment in apprenticeships. Should the scope of the levy be broadened to include non-apprenticeship training, the Government must demonstrate how funding for apprenticeships would be protected and how manufacturers would be able to use this additional flexibility to access the right skills training for their businesses.”
Russia/Ukraine crisis likely to pause future M&A activity
New figures published by the Office of National Statistics have revealed a fall in both inward and outward deal values and volume in Q4 2021, with a slight increase in the value of domestic deals.
Outward M&A values saw the biggest fall to 3.4bn in Q4 from 32bn in Q3, which is largely due the 29.8bn acquisition of Alexion Pharmaceuticals INC by AstraZeneca in Q3. The inward M&A values decreased to 10.9bn in Q4 from 12.4bn in Q3; while domestic deal values increased to 2.9bn in Q4 from 2.3bn in Q2.
In total, there were 77 completed deals in December 2021, down from 150 in September 2021 and the lowest level since the height of the pandemic in May 2020 where only 58 deals were completed.
Kirsty Sandwell, partner and head of transactions at RSM said: ‘The M&A market has been in a bubble over the past year, and these figures suggest the bubble has finally burst. The consistent run of high M&A activity is unlikely to be sustainable, and it looks like the industry is taking a much-needed pause for breath.
‘Ultimately, the deal environment needs certainty in order to flourish. The uncertainty surrounding the Russia/Ukraine conflict and the rise in oil and gas prices, presents headwinds for the deal environment which means M&A activity is unlikely to rebound quickly.
‘As witnessed after the Brexit referendum, buyers tend to halt deal activity until potential implications become more apparent, so it’s likely companies will take a similar approach in the coming months. There are many investors and advisers that have never lived or worked against a backdrop of inflation and rising interest rates, which adds to the macroeconomic uncertainty. This will naturally breed some caution as the community gets to grips with the new normal.
‘It’s likely tech M&A activity will be relatively unaffected during the current crisis and will drive overall M&A figures. With oil and gas prices on the rise, this may even lead to a focus on renewables and related infrastructure
UK firms’ customs duties surge by 63%, new figures reveal
Customs duties paid by UK businesses have jumped 63% to a record £4.7bn in the year to the end of January, according to research from accountancy group UHY Hacker Young.
The figures – up from £2.9bn in the previous 12 months – show that the last six months to 28 February 2022 are the six highest months on record for customs duties paid, with £2.6bn paid in that period alone. Over the past five years, the total amount of customs duties paid has averaged just £3.3bn per year.
UHY Hacker Young says the rise comes as post-Brexit increases in customs duties begin to bite for UK businesses and consumers.
Post-Brexit ‘Rule of Origin’ requirements have dragged far more imports into the customs duty net. These rules mean anything sold in the UK by EU businesses must wholly or largely originate in the EU to be exempt from customs duties when it enters the UK.
The company adds that the tightening of the ‘Rules of Origin’ requirements looks to be already having an impact on UK businesses and consumers. From January 1, the Government introduced a requirement that importers must show a declaration about the origin of the goods at the point of entry. If a business cannot prove the origin, they face paying the full rate of customs duty and additional penalties.
Sean Glancy, Partner at UHY Hacker Young, said: “These figures show that post-Brexit increases in customs costs are hitting businesses and consumers hard. With UK consumers already being hit by a cost-of-living crisis driven by increased energy costs and rising taxes, the jump in customs tariffs is the last thing they need.”
“Businesses are struggling under the weight of tariff costs and additional paperwork. These additional costs are biting just as they try to recover from pandemic-related costs and interruptions.”
“Since Brexit, customs duties have substantially increased costs for many businesses, in some cases making a dramatic impact on the bottom line. Businesses which are heavily dependent on trade with the EU may well be looking to reassess their models.”
“UK consumers are likely to face price increases at a time when the cost of living is already rising. They may also find familiar products no longer in stock should UK businesses cut imports of EU products.”
Streets Chartered Accountants appoint Martyn Shakespear as head of banking & finance
Streets Chartered Accountants, a top 40 UK accountancy and advisory practice, have appointed experienced banking and advisory specialist, Martyn Shakespear, as its new head of banking & finance.
Martyn joins Streets with over 40 years’ experience of providing funding advice to SMEs and corporates.
During his career, Martyn has held senior roles in NatWest, Bank of Ireland and the Co-operative Bank followed by 7 years as national head of banking & finance within a top 10 UK accountancy firm and more recently as a director with BTG Advisory.
When asked about Martyn’s appointment and what it will mean to Streets and their clients, the firm’s chairman, Paul Tutin, said: “We are especially pleased to welcome Martyn to the firm.
“For a number of years we have provided clients with funding advice and we are keen to ensure we respond to the growing need for this by recruiting a dedicated specialist. We are therefore delighted to have been able to recruit Martyn, with his well-established track record and understanding of SME funding.
“In particular Martyn is experienced in raising finance, including working capital solutions, invoice finance and asset-based lending, commercial loans and mortgages, together with foreign exchange strategies
“This is a significant appointment for us as we pride ourselves on being more than just accountants. The specialist expertise that he brings will prove invaluable for our clients and colleagues, as clients are increasingly looking at their funding arrangements as we emerge from the pandemic.”
Commenting on his new role, Martyn said: “Streets are a well-respected, dynamic and forward-thinking firm. In recent times I have got to know a number of the partners, staff and clients and cannot wait to build the banking and finance service offering across the whole of practice as I am passionate about the value this will bring.”
In his new role Martyn will provide banking and funding advisory services on a firm wide basis, covering its 17 offices throughout the Midlands, East of England, Yorkshire, London and the South East.
Sale and purchase option agreed over Altalto Project site
Altalto Immingham Ltd (Altalto), a subsidiary of Velocys, the sustainable fuels technology company, has sold its 100% interest in Rula Developments (Immingham) Limited (RDIL).
RDIL owns the site for the proposed Altalto waste-to-sustainable-fuel project, which is being developed in collaboration with British Airways.
RDIL has been sold to funds managed by Foresight Group LLP (Foresight), for £9.75 million, with a call option for Altalto to re-purchase RDIL within three years. The call option will require Altalto, and any new project partners, to pay up to £12.95 million in aggregate over the option period (the majority of which relates to a final payment in the event of exercise of the call option).
In addition, and subject to exercise of the call option, Altalto has agreed to grant Foresight a right of first refusal to invest up to £100 million in the project, alongside British Airways and other future investors, once the full funding is required.
Foresight brings a proven track record and history of investing in energy transition infrastructure. Following the sale, the project has retained the right to access the land for maintenance and pre-development activities associated with its existing planning permission. Commencement of construction remains subject to further clarification of government policy support for such projects.
This agreement follows on from a prior announcement in December, when Altalto exercised an option to acquire a 100% interest in RDIL with an initial part-payment of £2.5 million and deferred consideration. The deferred consideration payable is £7.25m, which will now be settled as part of this transaction, thereby satisfying all obligations under the historic option agreement.
Henrik Wareborn, CEO of Velocys, said: “Velocys is pleased to have Foresight involved in the Altalto project, alongside British Airways. This is a further step in bringing our SAF enabling technology solution to market.
“The Velocys technology pathway utilises domestic non-fossil feedstocks from sustainable carbon sources which have no alternative use, such as municipal solid waste and forestry residue.
“Sustainable aviation fuel has the same composition as conventional jet fuel, is globally approved and is suitable for immediate use. We firmly believe our technology will play a key role in helping to decarbonise the aviation sector, meet net zero targets, and improve the energy and fuel security of the UK.”
David Hughes, CIO of Foresight, said: “Foresight is delighted to become involved in the Altalto project through the acquisition of the proposed site. The project is consistent with our aims of investing in sustainable businesses that are looking to advance the energy transition.”
Sean Doyle, chairman and CEO of British Airways, said: “It’s great to have Foresight with us to help deliver the Altalto project, as we make our way on our journey towards net zero by 2050. The development of sustainable aviation fuel is an important part of our near to medium-term plan to decarbonise, alongside carbon capture technology. We believe the UK can be a world leader in this, and it’s crucial we work with both private industry and Government to drive forward this ambitious and hugely important work.”
Oscrete UK announces new NPD and sustainability manager
Bradford-based concrete admixture manufacturer Oscrete UK continues its growth trajectory with the appointment of a new NPD and sustainability manager.
Former laboratory manager Matthew Gabriel, has been promoted to the new role as the team further develops the company’s sustainability strategy.
With a clear focus on strengthening the firm’s commitment to sustainable construction, Matt’s two decades of concrete industry experience provides a strong foundation for further developing the company’s sustainability remit.
Matt says: “With the environment at the forefront of everyone’s minds and customers looking to increase their use of supplementary cementitious material, my priority is to develop products and processes which support our customers’ own route towards low carbon concrete.
“Our role as an additive manufacturer is crucial in helping reduce concrete’s CO2 footprint while finding cost effective, green solutions without impacting performance is key to the future of the construction sector. We are now looking to develop products that can help our customers to use or increase the use of products with a lower eCO2, hence the creation of a role dedicated entirely to this arena.”
Oscrete, based on Rutland Street in Bradford, is one of the UK’s leading specialist construction chemical suppliers, manufacturing a comprehensive range of concrete admixtures for the pre-cast and ready-mix market.
Director Scott Wilson added: “We expect to see continued growth in global demand for construction additives and that demand will be driven by sustainability requirements as well as performance.
“Our strategy is to keep product evolution and responsible manufacturing at the forefront of our output. Matt’s promotion is just the first step in our 2022 laboratory development plan where NPD and sustainability will lead our growth and our supply.”
Matt joined Oscrete in 2017 as laboratory manager following more than 10 years with Tarmac and Breeden. He added: “This an exciting and an important time as we accelerate our development of new admixtures to help the transition to carbon neutrality. I’m really looking forward to getting my teeth into a role which will help customers – and Oscrete – meet their sustainability goals.”
Plans approved for new student studios in Leeds
Plans have been approved for a new student scheme on Merrion Street in central Leeds. The development of 88 studio apartments with associated amenities, will be built at 26-34 Merrion Street, which was previously a bar and nightclub.
The scheme has been designed by Brewster Bye Architects for developer Urban Developments (York) Ltd. The part five, part seven and part nine storey building, will be delivered under the developer’s ‘Engage’ student brand. Work is due to start this summer and the scheme will be ready for occupation by 2024.
All 88 studios will have en-suites and the new building will also include a lounge, gym, study rooms, a cinema room and laundry facilities for residents. Four of the studios are accessible and there are two larger premium studios. The development will also include a staffed reception area and 23 cycle spaces.
Nick Gould from Urban Developments (York) Ltd said: “We have worked closely with the owner of the site, Mahmood Mazhar, to find a viable use for this vacant plot, which sits between the city’s universities and key retail areas.
“The scale, form and position of the building were all praised in the planning officer’s report, which stated that it would enhance the conservation area, as well as providing much needed student accommodation and local employment opportunities during construction and the subsequent operation as a student scheme.”
Mark Henderson, from Brewster Bye Architects, said: “This is the second purpose build student accommodation scheme we have designed and successfully achieved planning for with Urban under the Engage brand, following the approval of a large-scale development in Nottingham city centre.
“It’s a great location for students, in the very heart of Leeds, and our design sees the building step down in height and complement the surrounding streetscape. With ground floor glazing that creates an attractive and continuous street frontage on Merrion Street, our scheme will mirror the frontage of neighbouring The Merrion Project and really add to this part of the city centre.”
The scheme is located on the northern edge of Leeds City Centre’s main shopping and leisure quarters. Victoria Gate and Trinity shopping centres, as well as the city’s main university campuses and Leeds General Infirmary, are all less than a 10-minute walk away.
Spring Statement, did it really create a sense of spring and sunnier days ahead?
James Pinchbeck, Partner Streets Chartered Accountants:
The government has been reprimanded for releasing details of Budgets and Statements in advance of their hearing in the House. It would seem then such advice was heeded in the case of the Spring Statement, delivered in the House on 23rd March 2022. Little was known of what we might hear in advance. Though perhaps some may feel there was nothing to release or leak?
At a time of rising inflation and living costs, for many younger workers and households, it is something they will not have experienced in their lifetime and many will have listened to the Chancellor with baited breath for measures and support to ease the burden.
Whilst many were urging the Chancellor to use the Spring Statement to axe the health and care national insurance increase due to come in this April, few probably really thought he would and he didn’t.
In terms of support for all households facing increased costs of living, he announced a 5p reduction per litre in the fuel duty levy from 6pm. This will no doubt be welcomed by those reliant on their car for work, particularly those living and working in rural areas where alternative lower cost travel options are not always available.
Whilst we head towards the warmer months, few though will take their minds off increasing energy costs with the price cap hike due to come in from April. The number of people who can benefit from the news of the removal of 5% VAT levied on the installation of renewable energy including heat pumps, solar and wind etc, will probably be limited and lagged in their benefit for most. The Chancellor also announced an increase in the Household Support Scheme with a further £500m of support being available to local authorities to target assistance to those affected by energy price increases.
When it comes to managing rising energy costs for businesses, again the measures announced were limited in that they failed to address the issues currently faced. Supply chain issues, labour shortages increasingly giving rise to price rises for consumers and energy price rises are all key contributors to overall price rises faced on goods, especially food and other key household items. His help with energy costs for businesses was limited to removing business rates due on a range of green technology used to decarbonise buildings, including solar panels and batteries, whilst eligible heat networks will also receive 100% relief.
So looking at how the Chancellor sought to balance managing the economy, public debt and borrowing whilst seeking to promote growth and to help those, if not all, affected by rising living costs, what were the key announcements? In the here and now, or at least to have a more immediate benefit was the announcement that the threshold at which National Insurance Contributions are levied will rise by £3,000 to £12,570 in line with the Income Tax Threshold. The Chancellor declared that this represents a £300 tax cut for those who will benefit from the change from July 22. This threshold increase is believed to benefit some 70% of the workforce and should help to mitigate the increase due to come with the new National Insurance health and care levy.
When it comes to help for businesses, the Chancellor served up a lukewarm helping of reheated announcements made previously with support around reductions in Business Rates, stating he would introduce reliefs a year earlier in April 22, through his Help to Grow initiatives and a continued focus around innovation through Research and Development tax reliefs. He did however offer support to employers, from the 6th April, through an increase in the Employment Allowance from £4,000 to £5,000. This allows smaller businesses to reduce their employers National Insurance contributions bills each year.
As his Statement came to an end, the Chancellor’s final announcement was on the proposed reduction in the basic rate of income tax from 20% to 19% before the end of this Parliament. Perhaps with a sense that this Statement was one based either on Government seemingly becoming a little jaded, running out of steam, or facing the challenges of dealing more and more with issues in the here and now as opposed taking a more longer-term perspective. With recent media coverage we might be forgiven for thinking that it was a statement that marks the start of a government laying the foundation and making preparations for a general election perhaps even as early as next year.
Further details on the announcements included in the Spring Statement 2022 along with tax changes for 2022/23 are included in Streets Chartered Accountants – Spring Statement report.
https://www.streetsweb.co.uk/resources/2022/mar/24/streets-guide-spring-statement-2022/
Wakefield firm set for rapid growth after securing seven-figure investment
A family-owned investment business is on track for rapid growth after securing a seven-figure finance facility.
Banwait Group Holdings is a property investor and asset manager with a portfolio spanning the commercial, residential and healthcare sectors across the UK. It is the parent company of Real Estate Investments Group (REIG), which manages its investments, and Strong Life Care, a care home and assisted living provider.
Banwait Group has experienced double-digit year-on-year growth every year for the last ten years, and has grown from a core team of three to more than 260 today. Now, the firm is set to move to a new office in Wakefield to enable further expansion.
A seven-figure finance facility from Lloyds Bank has allowed Banwait Group to purchase the 5,500 sq ft space outright, and begin a fit-out designed with employee health and wellbeing at its heart. Facilities will include breakout spaces and mindfulness areas, as well as showers and changing rooms to enable active travel.
The Group is targeting ambitious growth, with a goal of exceeding £100 million in managed assets within the next two years and expanding its care facilities to over 1,000 beds.
Harpreet Banwait, Managing Director at Banwait Group Holdings, said: “I am incredibly proud of the growth we have achieved over the last decade. Our motto is ‘everyone has a life worth celebrating’ – and that underpins everything we do. It’s all about delivering the best results for our staff, tenants and care home residents, and with our new office we are ideally placed to achieve our ambitious growth plans, welcome even more talented staff, and boost the quality of our offering even further.”
Stuart Harper, relationship director at Lloyds Bank, said: “Behind both Real Estate Investments Group and Strong Life Care is a team of dedicated staff helping to deliver outstanding services. Over the past decade, Strong Life Care has built a reputation as one of the best care home providers in the country, and through REIG there is a steady source of income that can be reinvested in the business to help keep making it bigger and better.
“We look forward to continuing our support for Harpreet and the team as they continue on their growth journey.”
